EU Announces Antitrust Investigation Into Apple Supplier Corning

The European Commission has announced a new antitrust investigation into Apple glass supplier Corning.

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The European Commission has opened a formal investigation to assess whether Corning may have abused its dominant position on the worldwide market for a special type of glass that is mainly used to protect the screens of handheld electronic devices, such as mobile phones.

Corning, based in the US, is a global glass producer for many industrial and consumer applications. It produces Alkali-aluminosilicate glass ('Alkali-AS Glass'), a particularly break-resistant glass mainly used as cover for displays of portable electronic devices such as mobile phones, tablets, or smartwatches. Corning markets Alkali-AS Glass under the 'Gorilla Glass' brand, among others.


The Commission has concerns that Corning may have distorted competition by concluding anti-competitive exclusive supply agreements with mobile phone manufacturers (Original Equipment Manufacturers or 'OEMs') and with companies that process raw glass ('finishers').
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The EU says that that in its agreements with mobile OEMs Corning may have included:

● Exclusive sourcing obligations requiring OEMs to source all or nearly all of their Alkali-AS Glass demand from Corning.
● Exclusivity rebates granting rebates to OEMs on the condition that they comply with the exclusive sourcing obligations.
● 'English clauses' obliging OEMs to report to Corning on competitive offers, and allowing OEMs to accept that offer only if Corning fails to match the price.

Additionally, the EU claims that in its agreements with finishers Corning included:


● Exclusive purchase obligations obliging finishers to purchase all or nearly all of their Alkali-AS Glass demand, or an important subtype of Alkali-AS Glass, from Corning.
● No challenge clauses preventing finishers from challenging Corning's patents.

The Commission says it's concerned that the agreements that Corning put in place with OEMs and finishers may have excluded rival glass producers from large segments of the market, thereby reducing customer choice, increasing prices, and stifling innovation to the detriment of consumers worldwide.

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